Reborn Coffee, Inc. (REBN) AI Stock Analysis

• Market Cap: $11.92M
• Dividend Yield: N/A
• Average Volume (3M): 105.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• Revenue Growth: 7.63%
• EPS Growth: 35.75%
• Country: US
• Employees: 24
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Restaurants
• EPS (TTM): -1.79
• Shares Outstanding: 4,568,508
• 10 Day Avg. Volume: 115,236
• 30 Day Avg. Volume: 105,193
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.98
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Reborn Coffee, Inc. faces significant financial challenges, including operational profitability issues, high leverage, and negative cash flow despite strong revenue growth. The technical analysis suggests bearish momentum, and the negative P/E ratio highlights ongoing financial struggles. The recent corporate event adds uncertainty to its strategic direction. These factors collectively contribute to a low overall stock score.

Reborn Coffee, Inc. Business Overview & Revenue Model

Company Description

Reborn Coffee, Inc. (REBN) is a company engaged in the specialty coffee industry, focusing on providing high-quality coffee experiences through its various retail outlets. The company primarily operates in the food and beverage sector, offering a range of coffee-based beverages and related products. Reborn Coffee is dedicated to sourcing premium coffee beans and employing innovative brewing techniques to deliver exceptional flavors to its customers.

How the Company Makes Money

Reborn Coffee, Inc. generates revenue primarily through its retail coffee shops, which serve as the main point of sale for its coffee beverages and related products. The company capitalizes on its brand appeal and unique coffee offerings to attract customers and drive sales. Additional revenue streams may include the sale of packaged coffee products, such as whole beans or ground coffee, both in-store and online. Strategic partnerships with suppliers and collaborations with other brands can also play a role in enhancing the company's market presence and expanding its customer base, ultimately contributing to its earnings.

Reborn Coffee, Inc. Financial Statement Overview

Summary

Reborn Coffee, Inc. is experiencing revenue growth but struggles with profitability and cash flow generation. High leverage and low equity ratios signal financial risk, necessitating strategic improvements to enhance operational efficiency and financial stability.

Income Statement

Reborn Coffee, Inc. has shown a positive revenue growth trend with TTM revenue at $5.95 million, up from $5.51 million. However, persistent negative EBIT and net income margins indicate ongoing profitability challenges. The gross profit margin has improved to 68.55% TTM, suggesting better cost management, but negative EBIT and net profit margins highlight substantial operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio of 2.11 TTM indicates significant leverage. While stockholder equity increased to $2.67 million, the equity ratio remains low at 27.67%, highlighting potential financial risk. The balance sheet shows a need for improved capital management to strengthen financial stability.

Cash Flow

Free cash flow remains negative at -$4.03 million TTM, with minimal improvement from prior periods. Operating cash flow is also negative, indicating cash generation issues. There is a need for strategic adjustments to enhance cash flow stability and align it with net income.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
5.51M	3.24M	2.28M	793.09K	617.82K
	Gross Profit
3.62M	2.12M	-676.98K	-435.65K	-320.06K
	EBIT
-4.54M	-3.54M	-2.56M	-1.06M	-750.11K
	EBITDA
-4.33M	-3.31M	-3.25M	-924.55K	-633.72K
	Net Income Common Stockholders
-4.73M	-3.55M	-3.44M	-1.07M	-752.65K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
164.30K	3.02M	905.05K	128.57K	-1.04M
	Total Assets
9.25M	8.46M	4.76M	1.98M	1.71M
	Total Debt
7.16M	3.85M	3.39M	2.59M	4.14M
	Net Debt
7.00M	831.12K	2.49M	2.46M	5.18M
	Total Liabilities
8.41M	4.17M	3.57M	2.73M	4.22M
	Stockholders Equity
846.41K	4.29M	1.20M	-752.40K	-2.51M
Cash Flow		Free Cash Flow
-5.59M	-3.98M	-2.45M	-1.00M	-723.41K
	Operating Cash Flow
-3.18M	-3.30M	-1.95M	-884.93K	-718.70K
	Investing Cash Flow
-2.41M	-681.53K	-498.22K	-115.84K	-4.71K
	Financing Cash Flow
2.74M	6.09M	3.22M	1.13M	723.41K

Reborn Coffee, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REBN, the sentiment is Negative. The current price of 2.61 is below the 20-day moving average (MA) of 3.10, below the 50-day MA of 3.91, and below the 200-day MA of 3.00, indicating a bearish trend. The MACD of -0.35 indicates Positive momentum. The RSI at 28.46 is Positive, neither overbought nor oversold. The STOCH value of 8.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for REBN.

Reborn Coffee, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SDOT	62 Neutral	$9.19M	2.01	23.53%	―	-3.54%	―
Sector *	61 Neutral	$6.55B	11.72	3.07%	4.01%	2.66%	-21.27%
GAN	46 Neutral	$81.98M	―	229.13%	―	4.31%	77.31%
CLEU	44 Neutral	$5.55M	―	-7.45%	―	―	―
REBN	42 Neutral	$11.92M	―	-278.67%	―	7.63%	35.75%
DTCB	40 Underperform	$3.06M	―	-60.46%	―	-8.13%	0.04%
BTBD	36 Underperform	$6.30M	―	-28.61%	―	5.31%	-136.39%

Reborn Coffee, Inc. Corporate Events

Reborn Coffee Rescinds Share Purchase Agreement

On March 14, 2025, Reborn Coffee, Inc. and Bbang Ssaem Co. Ltd. agreed to rescind a share purchase agreement originally dated November 6, 2024. This rescission renders the agreement void from the beginning, impacting the company’s previous financial disclosures and potentially altering its market strategy.

Reborn Coffee Terminates Equity Purchase Agreement

Reborn Coffee, Inc. entered into a Standby Equity Purchase Agreement with YA II PN, Ltd. on February 12, 2024, allowing the company to sell up to $5,000,000 of its common stock until March 1, 2027. However, on February 5, 2025, Reborn Coffee terminated the agreement effective February 12, 2025, having sold no shares except for 64,656 shares issued to Yorkville as consideration, and incurred no penalties or fees.